As part of its global restructuring the company will close one factory in South America, end local production of the Fiesta, and exit the heavy truck business.

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Some time in 2019Ford will close its São Bernardo do Campo factory located in the suburbs of Sao Paulo, and its oldest manufacturing facility in Brazil.

The factory's closure will see the loss of an estimated 2700 manufacturing jobs, and the end of local production of the previous-generation Fiesta.

It will also see the automaker exit the local heavy commercial truck market, with the plant responsible for manufacturing the Cargo (above), F-4000 and F-350 models.

Ford will continue to produce passenger cars and crossovers at its much newer facility in the Bahia, in the country's north-east.

The closure of São Bernardo do Campo is the latest piece of restructuring to take place in Ford's Latin American unit as it seeks to stop the flow of red ink in the region.

Ford says it has already reduced its wage and administration bills by 20 per cent. It has also ended production of the Focus in Argentina, with the automaker repositioning itself primarily as a manufacturer of crossovers, SUVs and utes.

This "action" in Brazil is expected to cost Ford around US$460 million ($645 million), and follows other cost cutting measures elsewhere.

Both automakers are still in discussions to co-operate in other areas. Possible future joint ventures include Ford using Volkswagen's MEB electric car platform, and the two manufacturers combining their autonomous vehicle technology development efforts.